The diagrammatic placing of the small rectangle representing the natural numbers inside the bigger rectangle representing the whole numbers represents the fact that the set of natural numbers is a subset of the set of whole numbers. This means that every natural number is also a whole number, but not every whole number is a natural number.
Mathematically, we can represent this relationship using set notation. We can define the set of natural numbers as N = {1, 2, 3, 4, 5, ...} and the set of whole numbers as W = {0, 1, 2, 3, 4, 5, ...}. We can then say that N is a subset of W, which is denoted as N ⊆ W. This means that every element of N is also an element of W, but there may be elements in W that are not in N.